DBS, Franklin Templeton, and Ripple have entered into a Memorandum of Understanding aimed at launching repo markets that utilize tokenized collateral and stablecoins.
As part of this collaboration, the DBS Digital Exchange (DDEx) will feature sgBENJI, the token associated with Franklin Templeton’s tokenized money market fund, alongside Ripple’s stablecoin, RLUSD. This arrangement allows eligible DBS clients to exchange RLUSD for sgBENJI tokens, facilitating quick portfolio adjustments while earning yield during periods of market volatility.
Looking ahead, DBS plans to assist clients in unlocking liquidity by leveraging their sgBENJI tokens as collateral. This could involve obtaining credit through repurchase transactions with the bank or through third-party platforms, where DBS will act as an agent holding the collateral. This structure broaden’s client access to liquidity pools while ensuring that the collateral is securely managed by a trusted institution.
Additionally, Franklin Templeton will tokenize sgBENJI on the XRP Ledger, as well as other existing blockchain platforms, to enhance accessibility across various chains and participants within the blockchain ecosystem.
Roger Bayston, head of digital assets at Franklin Templeton, stated, “We believe that blockchain and tokenization unlock powerful new use cases with the potential to transform the global financial landscape. By leveraging Franklin Templeton’s expertise in blockchain technologies and digital assets, we are thrilled to partner with DBS and Ripple to introduce innovative trading and lending solutions for investors. This collaboration marks a significant advancement in the utility of tokenized securities and plays a crucial role in the growth of Asia’s digital asset ecosystem.”